ADD IN THE EXCEL FORMAT WITH THE FORMALS AND EXPLAIN WITH YOUR ANSWERS. 11. Compute the USD
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11. Compute the USD NPV and IRR of the following investment by Ingersoll-Rand (IR) to build a distribution center (DC) in China. The DC will allow the company to generate additional sales and cost savings in China (CNY) and Japan (JPN). Convert the CAPEX to USD using the spot exchange rate and depreciate a straight line over its life. Use IRP theory to forecast future exchange rates. Assume the business is valued at 5 times EBITDA in 15 years-- which should be included in the NPV and IRR. Currency amounts are in millions.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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